Tobacco Documents Online

FOR RELEASE UPON DELIVERY October i, 19 81 ~TATKMENT BY ~ THE HONORABLE JOHN M. WALKER, JR. ASSISTANT SECRETARY {~NFORCEMENT AND OPERATIONS) U.S. TREASU,RY DEPARTMENT BE FOR~ THE SUBCOMMITTEE Oh~ CRIME OF THE HOUSE COMMITTEE ON THE JUDICIARY Mr. Chairman and Members of the Subcommitee: " I appreciate this opportunity to testify concerning the Bureau of Alcoh~l, TObacco and Firearms (BATF). Rep-o~ts which appeared in the media recently regarding a final specific Administration proposal to eliminate BATF were incorrect. While a number of possible options to reorganize and possibly eliminate a number of activities are being considered, no final decision has been made by the Department to .dismantle or abolish BATF. At the present time BATF"will continue to operate as an independent bureau pending further review ~f its status and functions. However, in line with Administration d~cisions to impose. b~dget-cuts across hhe board, BATF does face substantial budget cuts in FY 1982~ These cuts w{ll result in personnel reductions, T105390288

oI o - 2 - The Department bel{eves that in the area of criminal ~nforcement substantial savings can be made by reducing certain lower priority functions while still maintainiDg statutorily mar~ated priority functions. For example, the closing of certain offices; the realignment of all regulatory functions in the firearms and explosives area from regulatory enforce- ment to criminal enforcement personnel; and the consequent reductions in administrative overhead costs as a result of these actions are among some of the budget cutting moves we are considering in FY 1982. "~s you know this is a process that is going on in all government agencies at this moment. It is important that we continue to enforce the firearms and explosives statutes because of the impact that violations of these laws have on $i0ient crime. We beii.eve that effective enforcement in these areas can be accomplished with fewer people and greater productivity. Special attention in the firearms area will be concentrated on .the following types of of fenders : - Narcotics t~affickers; - Stolen property fences; - Interstate traffickers; - Organized crime figures; - International arms traffickers; - Outlaw motorcycle gang members; and - Terrorists. T!05390289

The exploosives statutes will also continue t~ be enforced. Major arson cases, which are an outgrowth of the explosives statutes, will continue to be pursued. Arson investigations• will stress the-concentration of resources in those cases where there are arson-for-profit schemes involving c~mmercial premises engaged in street crimes. We believe that this-is the.proper Federal role. in .arson investigations. We plan to put great emphasis~on the training of state and local officials t~) handle arson\k~roblems. We are hopeful that this will enable some iqcal jurisdictions to take over their own arson investigations, thereby reducing the need for ATF presence. We plan-to reduce investigations of illicit alcohol .~• and cigarette smuggl.ing: "~ number of cases referred {n-". ........ recent times in these areas is substantially lower than in the past and state and local enforcement agencies are doing a good job in handling what are essentially state and local government probiems. If a case is referred to ATF which state and local enforcement is unable to handle completely, we will, of course, render assistance. As you know, ATF. has an excellent reputation_for cooperation with state and local enforcementauthorities. We intend to see that this cooper- ation continues. Regulatory Enforcement In the area of regulatory enforcement, we expect to be able to make substantial reductions without .~eopardizing the T105390290

approximately $8 billion, in revenue expected to be collected in FY 1982 from the alcohol and tobacco excise taxes. As you may recall, the Federal~ Government's basic approach to revenue protection for alcoholic beverages has shifted in the last three years f~om one of joint custody of t~he product, which required the physical presence of a BATF warehouseman, to one in which the taxable product is kept under bond, with proper payment of ~xcise taxes ensured through periodic audits of financial and inventory records. Thus, these important revenues can be protected with substantially less personnel than was required in the past, and we believe that there is minimal risk to these revenues from the reductions we are considering. With respect to other reg.._ulatory functions performed by • BATF in the areas of product fraud, labeling, advertising, an~ anti-competitive trade practices, while it is true that we may be making substantial reductions in these functions, it is also true that many of these fundtions, which are conducted under authority of the 1935 Federal Alcohol Administration Act, ma~ be outmoded and unnecessary. We believe that those regulatory functions that are useful can be performed more efficiently and with less manpower than has been devoted to them in the past. And, of course, state governments still have the preeminent authority granted to themby the Twenty-First Amendment to regulate the.sale and consumption of alcoholic beverages within their own borders as they see fit. T105390291